Development plan for Alve submitted

January 16, 2007, 01:00 CET

Operator Statoil has today, 16 January, submitted a plan for development and operation (PDO) of the Alve gas and condensate field in the Norwegian Sea to the Ministry of Petroleum and Energy (MPE).

Spudding in is scheduled for 1 August 2007 and first gas from the field is expected in December 2008. Total investment is estimated at NOK 2.4 billion.

Alve will be phased in via tie-back to the Statoil-operated Norne field. The licence wishes to develop the field with a single subsea template with four drilling slots.

"The development will secure good and continuous exploitation of available capacity on the Norne production ship and in the Åsgard Transport gas trunkline," says Jostein Gaasemyr, operations vice president for the field.

"A rapid realisation is important with respect to a total draining of reserves in the area within the production ship's and facilities' working life.
It is pleasing that we've started work on Norne's second satellite."

The Urd satellite field was tied back to Norne in 2005. The development solution on Alve will involve some modifications to the Norne ship.
A maximum gas production of around 4 million cubic metres (scm) per day is expected from the field. Gas reserves are estimated at 6.78 billion scm and 8.3 million barrels of oil equivalent of condensate.

Kjell Helge Eide is project manager for the Alve field and the initiator of a simplified PDO. Following dialogue and cooperation with the Norwegian Petroleum Directorate and the MPE, it has become apparent that a PDO for smaller projects tied into existing infrastructure can be considerably simplified. This is more effective and cost saving for all parties.

"On the Alve project, we've saved a lot of time by simplifying the PDOs," says Mr Eide.

"I hope the simplified Alve PDO is an example that will be followed."

The Alve field lies in production licence 159B and was proven in 1990. Alve comprises the Garn, Not, Ile and Tilje formations with proven reserves lying in Garn and Not.
The field lies 16 kilometres south-west of the Norne field in a water depth of 390 metres.

Statoil has a 75% share in Alve. The other licensees are Danish Oil and Natural Gas (Dong) with 15% and Hydro (10%).